Jan. 20 at 8:53 PM
Lower mortgage rates were short-lived as bond market shifts pushed borrowing costs higher.
The average 30-year fixed mortgage rate increased 0.14 percentage point to 6.21% on Tuesday, the highest since early January. This reverses a previous drop that followed President Donald Trump’s announcement directing Fannie Mae and Freddie Mac to buy
$200 billion in mortgage-backed securities. The rise casts doubt on hopes for a stronger housing market this year.
Rising 10-year Treasury yields—driven by higher Japanese bond yields and fears of a potential trade conflict over Greenland—contributed significantly to the rate increase. Although trade tensions and foreign bond markets may seem distant to typical buyers, these changes directly influence mortgage rates. The move pushes rates further above the 6% threshold, a key psychological level for homebuyers, potentially slowing buyer activity despite early signs of higher-than-usual January traffic.
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